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Best Rentals for First Time Hudson Property Investors

Hudson Real Estate Agent Showing Property Investors a Refurbished HomeWhen you are a first-time property investor in Hudson, it could be hard to know what type of rental property is a good fit. There are many different property types, and each one contains particular challenges and opportunities. For those who are just starting, experts typically recommend buying a single-family dwelling. However, would it be useful if you focus on foreclosures, older homes, or new construction? With so many options out there, it’s important to learn about each one before embarking on your real estate investing journey.

Experts often recommend that single-family homes are ideal for a first-time property investor. They tend to attract tenants that are more financially stable and want to stay in the home longer. This type of stability is important when you are first starting. But before anything else, you also need to find a rental property that you can afford. That desire for a great bargain often leads new investors to consider buying a foreclosed home.

A foreclosed home is a property that has been reclaimed by the bank that holds the mortgage. Buying a property from a bank, compared to a private owner, has a few advantages. Banks are often willing to negotiate a bit more on the price for buyers who can close right away. Another benefit is that you don’t have to think if the property has a clean title or not. The bank will clear any liens or back taxes owed for you. While the bidding and buying process will be different for a foreclosure, you can still qualify for a range of mortgage options that include both VA and FHA loans.

Unquestionably, buying foreclosed properties does have a few drawbacks as well. One of the biggest problems for buyers is that foreclosed properties tend to be sold as-is. The property may have been sitting empty for some time, allowing maintenance problems to develop or worsen. Moreover, the previous owners may have stripped or damaged the house on their way out. It is not uncommon for owners to leave the property in very bad shape, knowing the buyer will bear the cost of renovations. It is not advisable to buy a foreclosed property unless you set aside enough cash on hand to fix it up.

When looking at older homes, you may encounter similar issues. Though many older homes have been updated and maintained, these probably won’t be the best bargains. Although, it is important to avoid fixer-uppers unless you have cash for a contractor or the skills to do the work yourself. The lower-priced properties will often come with maintenance or repair issues, which can range from simple cosmetic elements to serious damage. Nevertheless, older homes do have many advantages. Buying a home in an established neighborhood can help you more easily calculate a competitive rental rate and even attract tenants seeking a particular location or community.

From another perspective, buying a brand new house to serve as a rental is becoming more and more common for a few reasons. A few tenants may be willing to pay more to rent a house that no one else has lived in before. And you can often have more say in the design and style of the house. Newer homes will require much less maintenance and repair and may have a lot of potential to increase in value fairly quickly. On the other hand, counting on appreciation is always a gamble. That is mostly correct for new construction, where property values can be more difficult to determine. In other places, you might need to hold onto the home longer to find out any significant returns, and new construction is regularly located farther away from amenities, urban centers, and public transportation. It may discourage some tenants from renting the home.

With both pros and cons for each type of investment property, the one you ultimately choose is a matter of personal preference. Both older homes and new construction are usually relatively easy to finance, with numerous different mortgage options available. There are several financial resources available to investors for both property types. However, it is important to note that budgeting for every kind of home will be different due to the unique properties of each one. Lastly, as a first-time property investor, it is important to know as much as you can about every unique kind of property before moving forward with your investment.

When you purchase your new rental property, you’ll need someone to manage it. The Hudson property managers at Real Property Management Connection can handle everything from move-in to move-out. Contact us online or call us at 352-428-2316 for more information.

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